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Insider’sreport and decentralization of the assets,"
according to a white paper published
on payments by Libra. Libra is slated to launch in
2020. Facebook has also formed Cali-
bra, a new subsidiary tasked with
Facebook's cryptocurrency using Libra Blockchain to create fi-
nancial software and services such as
play faces trust challenges a payments app that consumers can
use to send Libra through Messenger
and other Facebook apps.
By Patti Murphy Facebook said it hopes to recruit
ProScribes Inc. 100 organizations for the Libra As-
sociation – including those involved
acebook's initiative to develop a new cryptocurrency in collaboration in payments, technology, online
with leading payment brands – including Mastercard, Visa, PayPal marketplaces, telecommunications,
and Stripe – could be seen as a watershed moment for cryptocurrency blockchain, venture capital, nonprof-
F adoption. Or it could be a dud. I'm leaning toward the latter. First, its, multilateral organizations and
some background. Libra is a new cryptocurrency being built by Facebook – academics. To date, 28 organizations
actually it's to be built by an independent Libra Association that Facebook is have joined the association, which
setting up. It will be built on a flexible, secure and scalable blockchain called will operate as a not-for-profit head-
Libra Blockchain. Libra currency will be backed by a reserve of assets, the quartered in Geneva, Switzerland.
Libra Reserve – a basket of currencies, government securities and bonds –
intended to provide price stability, something most cryptocurrencies are sorely In addition to leading payment com-
lacking. The reserve will be funded by investors and Libra users. panies, initial members include eBay,
multinational communications con-
"The assets of the Libra Reserve will be held by a geographically distributed glomerate Vodafone, blockchain plat-
network of custodians with investment-grade rating to provide both security form Coinbase, Lyft and Uber, Spoti-
fy, micro-lending platform Kiva, and
the venture firm Thrive Capital. All
members are to have an equal say in
the management of the association.
Banking the unbanked
In introducing Libra, Facebook de-
scribed it as a move designed, at least
in part, to extend the benefits of mod-
ern, digital payments to an estimated
1.7 billion unbanked adults, world-
wide. While these adults, many of
whom live in undeveloped or under-
developed nations, don't have bank
accounts, at least 1 billion have access
to mobile devices, Facebook claimed.

"Libra holds the potential to provide
billions of people around the world
with access to a more inclusive, more
open financial ecosystem," said Da-
vid Marcus, a former PayPal execu-
tive who was hired to lead Calibra.
"We know the journey is just begin-
ning, but together we can achieve Li-
bra's mission to create a simple global
currency and financial infrastructure
that will empower billions of people."

Facebook and its Instagram and
What's App units, combined, have
about 2.4 billion monthly users

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